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MAVERICK TUBE CORPORATION RECORDS PROFIT IN FACE OF LOW DEMAND

    MAVERICK TUBE CORPORATION RECORDS PROFIT IN FACE OF LOW DEMAND
    ST. LOUIS, Jan. 22 /PRNewswire/ -- Maverick Tube Corporation (AMEX: MAV) announced today a net income for its first fiscal quarter ended Dec. 31, 1991, of $192,000 or $.03 per share, compared with a net income of $2.4 million or $.59 per share in the first quarter of 1991. Fiscal 1992 earnings per share reflect additional shares outstanding due to Maverick's initial public offering in March, 1991.  Net sales for the first quarter of fiscal 1992 were $22.5 million compared to $42.5 million for the same period a year ago.
    The decline in sales and net income was primarily attributable to reduced demand for new Oil Country Tubular Goods in the United States and Canada, the principal market for the company's products.  Drilling for oil and natural gas in the U.S. has fallen by 29 percent when compared to the same quarter last year.  The low demand has been accompanied by a reduction in industry-wide inventories, lessening the demand for new product.  As a result, shipments by domestic producers into this market declined by 46 percent from the same quarter last year.
    Gregg Elsenberg, president and CEO, noted "Maverick continues to aggressively attack our operating costs in this period of reduced demand for our products.  Our earnings improvement, in relation to our two previous quarters was a welcome change.  I am particularly pleased with being profitable, despite lower volume and selling prices.  This was accomplished due to lower cost of goods sold relative to both steel costs and manufacturing costs.  We have also continued to improve our market share during the last six months."
    Maverick Tube Corporation is a St. Louis, Mo. based manufacturer of tubular products used in the energy industry in drilling, production and surface transportation applications.
                     MAVERICK TUBE CORPORATION
               Selected Consolidated Financial Data
             For the First Quarter Ended Dec. 31, 1991
        (In thousands, except shipments and per share data)
                            (Unaudited)
     Three Months Ended Dec. 31;        1991                   1990
    Shipments (Tons)                   33,723                 64,264
    Net Sales                        $ 22,494               $ 42,516
    Gross Profit                     $  1,590               $  5,604
    Income From Operations           $    433               $  4,093
    Net Earnings                     $    192               $  2,367
    Per Share Earnings               $   0.03               $   0.59
    Weighted Average Number of
     Shares Outstanding                 5,578                  4,045
    -0-             1/22/92
    /CONTACT:  Charles O. Struckhoff, vice president-administration and secretary of Maverick Tube, 314-537-1314/
    (MAV) CO:  Maverick Tube Corporation ST:  Missouri IN: SU:  ERN FC -- NY045 -- 2224 01/22/92 11:14 EST
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Publication:PR Newswire
Date:Jan 22, 1992
Words:415
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